Hearings begin for Philadelphia casino license

Penn National Gaming will own one-third of Hollywood Casino Philadelphia, which will be built in South Philadelphia's stadium district if the Pennsylvania Gaming Control Board chooses its proposal.

The five applicants vying for Philadelphia's coveted casino license are getting the chance to make direct pitches to the state's Gaming Control Board this week.

Starting today, the public suitability hearings for the companies willing to spend up to $700 million on the new Philadelphia casino will begin at the Pennsylvania Convention Center in Philadelphia.

Applicants will present the board with evidence related to their character, operational, community impact and financial suitability. They'll also show plans to ensure diversity and prevent compulsive gambling and other problem issues.

Presenting on the first day is PA Gaming Ventures LLC, which proposed the Hollywood Casino Philadelphia at 700 Packer Ave.

PA Gaming Ventures is the umbrella group that owns Hollywood Casino, and it comprises Penn National Gaming, Wyomissing, which will own one-third of the facility, and Philadelphia Casino Corp., will own two-thirds. Because Penn National already operates a Pennsylvania casino, it could not own more than one-third of another one.

Penn National will serve as developer and manager of the operations of the facility, said Karen Bailey, vice president for public affairs for Penn National.

With the location at South Philadelphia's stadium district, Hollywood Casino aims to serve as another source of entertainment to the roughly 8 million visitors each year.

"We believe that our location provides the commonwealth with the greatest opportunity to grow the customer base, attracting customers out of the New Jersey suburbs," Bailey said in an email.

The 100,000-square-foot Hollywood Casino would cost $480 million to construct, and would include 2,050 slot machines and 81 table games, with an additional 1,000 slots and 40 tables planned for phase two.

Two-thirds of the revenue will be distributed to Philadelphia Casino Corp. and on to the Philadelphia School District and public employee pension system.

Robert Ambrose, a Drexel University professor of gaming and hospitality professor with areas of expertise in casinos, said the Philadelphia market is valued for its diverse business culture.

"Philadelphia is a great market to be in," he said. "With the entertainment, dining, tourism, it's just a great place to be."

Also presenting today is Tower Entertainment LLC, which pitched The Provence at 400 N. Broad St.

On Wednesday, the board members will hear from Market East Associates, which has proposed Market8 at Eighth and Market streets.

On that same day, PHL Local Gaming LLC will push for Casino Revolution at 3333 S. Front St.

Finishing up on Thursday is Stadium Casino LLC, which will present its Live! Hotel and Casino for 900 Packer Ave.

"All the proposals have all been great," Ambrose said. "I'm intrigued by all of them because they represent their own brands, but they've been adapted to the Philadelphia market with flexibility to the branding."

Wynn Resorts withdrew its proposal in November to build a $925 million casino-resort on the Delaware River, which Bailey said reinforces that Penn National is among the top developers and operators in license battle.

"We think Wynn's exit from the competition better supports or proves the accuracy of our project as it relates to size and capital investment we are proposing," Bailey said. "We believe our project was right-sized right from the get-go and we know this because of our experience in the market and in regional gaming overall."

Following the hearings, Gaming Control Board officials will take the information presented into account with other previously gathered public input, written comments from elected officials and data gathered by the board's Bureau of Investigations and Enforcement and Licensing.